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Production Planning and Control

  • 1. Production Planning may be said to be atechnique of forecasting ahead every step in thelong process of production, taking them at righttime and in the right degree and trying tocomplete operations at the maximum efficiency In the words of Kimball and Kimball Jr – “The planning of industrial operations involvesfour considerations, namely, what work shallbe done, how the work shall be done andlastly, when the work shall be done.”
  • 2. Production control is the process that keeps awatchful eye on the production flow and size ofresources along with the location, of any deviationfrom the present action and to arrange for theprompt adjustment so that the production may runaccording to the original or revised scheduleIn the words of Henry Fayol –“Production control refers to ensuring that allwhich occurs is in accordance with the rulesestablished and instructions issued.”
  • 3. Inputs like materials, men and machines are efficiently used Factors of production are integrated to use them economically Division of work is undertaken carefully so that every available element is properly utilised Work is regulated from the first stage of procuring raw materials to the stage of finished goods Questions like what, when and how to be manufactured are decided
  • 4. Determining sequence of operations for continuous production Planning plant capacity for future production programmes Issuing co-ordinated work schedules to concerned persons Maintaining sufficient inventories to support continuous flow of production Evaluating performance of workshops Maintaining production schedules to ensure delivery at proper time
  • 5. Preparation of production budget Devising manufacturing methods and sequence of operations Deciding type of machines and equipments Preparation of operation sheets and instruction cards Estimating men, machine and material requirements Undertaking time and motion studies Preparing master schedules
  • 6. Production planning and control is important for the following reasons  For Increasing Production – Main purpose of production planning is to arrange inputs. Production control programme minimises idleness of men and machines. It thus helps in raising industrial output. For co-ordinating plant activity -In planning production is carried out in a number of processes and thus activities are synchronized for smooth working.
  • 7.Sub-dividing the master schedule into manufacturing and subsidiary orders Routing Scheduling Despatching Expediting Tool keeping
  • 8. For Cost Control – A properly planned system of production will help in controlling costs by not only making full utilisation of various inputs but also by increasing output and lowering overhead expenses per unit. For Rationalisation of Production Activities – In production planning, the process of entering of raw materials and converting them into finished goods is planned in such a way that everything is done in sequence or routine. It regulates flow of inputs to run production system smoothly
  • 9. Following are the limitations faced by production planning and control  Based on Assumptions – Production planning and control is based on certain assumptions. In case the assumptions prove correct, the planning and control will go smoothly. But if they go wrong, process of planning and control will go weak. Rigidity – Under production planning and control, there is rigidity in the behaviour of employees and it may not help in smoothening flow of work.
  • 10. Difficult for small firms – This process is time consuming and therefore not affordable for small firms Costly – It is a costly device as its implementation requires separate persons to perform functions of planning, expediting, dispatching etc. Dependence on External Factors – External factors like natural calamities, change in technology, government controls etc reduce effectiveness of production planning.
  • 11. Planning Routing Scheduling Despatching Follow-upand Expediting Inspection
  • 12. It is the first element of production planning andcontrol. Planning is deciding in advance what is tobe done in future. An organisational set up iscreated to prepare plans and policies. Variouscharts, manuals and production budgets are alsoprepared. Planning provides a sound base forcontrol. A separate department is set up for thiswork.
  • 13. Routing is determining the exact path which will befollowed in production. It is the selection of the pathfrom where each unit have to pass before reaching thefinal stage. The stages from which goods are to passare decided in this process.In the words of ALFORD and BEATY –“Routing is the specification of the flow sequence ofoperations and processes to be followed in producinga particular manufacturing lot.”
  • 14. The following steps are taken for completing a routing procedure  Deciding what part to be made or purchased Determining Materials required Determining Manufacturing Operations and Sequences Determining of Lot Sizes Determining of Scrap Factors Analysis of Cost of the Product Preparation of Production Control Forms
  • 15. Scheduling is the determining of time and date wheneach operation is to be commenced or completed. Thetime and date of manufacturing each component isfixed in such a way that assembling for final product isnot delayed in any way.In the words of KIMBALL and KIMBALL –“The determination of the time that should berequired to perform each operation and also thetime necessary to perform the entire series, asrouted, making allowances for all factorsconcerned.”
  • 16. Master Scheduling – It is the breakup of production requirements. It is the start of scheduling. It is prepared by keeping in view the order or likely sales order in near future.Manufacturing Scheduling – It is used where production process is continuous. The order of preference for manufacture is also mentioned in the schedule for a systematic production planning. Detail Operation Scheduling – It indicates the time required to perform each and every detailed operations of a given process
  • 17. Despatching refers to the process of actuallyordering the work to be done. It involves puttingthe plan into effect by issuing orders. It isconcerned with starting the process and operationon the basis of route sheets and schedule charts.In the words of JOHN A. SHUBIN –“Despatches put production in effect byreleasing and guiding manufacturing order in thesequence previously determined by route sheetsand schedules.”
  • 18. Following two procedures may be used for despatching Centralised Despatching – Under this, orders are directly issued to workmen and machines. It helps in exercising effective control. Decentralised Despatching – Under this procedure all work orders are issued to the foreman or despatch clerk of the department or section. It suffers from difficulties in achieving co-ordination among different departments.
  • 19. “Follow up or expediting is that branch of productioncontrol procedure which regulates the progress ofmaterials and part through the production process.”Follow up Procedure –Progress may be assessed with the help of routine reports or communication with operating departments. The follow up procedure is used for expediting and checking the progress.
  • 20. Inspection is the process of ensuring whether theproducts manufactured are of requisite quality ornot. Inspection is undertaken both of products andinputs. It is carried on at various levels ofproduction process so that pre-determinedstandards of quality are achieved. Inspection ensures the maintenance of pre-determined quality of products.
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